| Verence_Terrawin | Date: Monday, 16 Jan 2012, 4:44 PM | Message # 1 |
 Major general
Group: Users
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| To the Markets
We regret to announce that based on Deralia's Monarch defaulting on Imperial Debt, Deralia's credit rating has been dropped from 720+ to 720-, while the Government itself has not defaulted yet, Deralia's monarch has defaulted, indicating a likely future downward trend. Deralia is still a very good world for it's region and should not be written off on the basis of this downgrading. The purchase of the debt and lowered interest rate offered by the Cronese Mandate has stalled further downgrades.
However, it should be noted that even with the downgrade, a 2% daily compound rate of interest is essentially unsustainable. It should be noted that the average cost of borrowing for a world with Deralia's standing should be around 5% annually. This particular debt to the Cronese Mandate has the potential to snowball to unrealistic and unaffordable levels, tainting both economies.
The Central Bank of Alsakan urges King Deralius to clear this debt from his books, even if it means borrowing elsewhere to pay it.
Central Bank of Alsakan Sovereign Bond Credit Rating Scale
1000 - Prime Investment: Creditor is considered an extremely safe borrower, few if any defaults in the last century.
900 - High Grade Investment: This is the Average for most industrialised Core Worlds, few defaults, low risk.
800 - Upper Medium Grade: This is the Average for most worlds in the Inner Rim and Expansion Region, considered to be reasonable if not excellent quality. Small but present risk of default.
700 - Lower Medium Grade: This is the Average for Mid Rim worlds. Some defaults may be on record, however the vast majority of payments are still honoured.
600 - Investment Grade Speculative: This is the Average for most well established Outer Rim worlds. Risks start emerging at this level,
500 - Non-Investment Grade Speculative: This is the rating of the more disorderly or unstable Outer Rim worlds (proximity to Hutt Space is a major factor), there may be a history of default or political turmoil.
400 - Highly Speculative: At this level the majority of credit agreements are still honoured, however, defaults on payments are not to be unexpected.
300 - Substantial Risk: Newly settled worlds are often awarded this credit rating, little credit history or significant history of defaults. Defaults may be more regular.
200 - Extremely Speculative: Very risky debt, defaults are common.
100 - In default with prospects for recovery: The world is presently defaulting on the majority of it's debt, however, it is considered likely to recover.
0 - In default without prospect of recovery: The world is in default and unlikely to recover.
Progress indicators
+ Indicates upward progress on rating scale.
- Indicates downward progress rating scale.
Some worlds by credit rating
Anaxes: 1000
Alsakan: 1000
Brentaal: 980+
Imperial Center: 1000
Ralltiir: 1000
Druckenwell: 850
Cronese Mandate: 800
Tammuz-an: 800
Deralia: 720-
Sluis Van: 850
Vjun: 700
Telos: 750
Anobis: 780
Garos IV: 750-
Naboo: 850
Empress Teta: 1000
Eriadu: 900
Monor II: 300+
Alurion: 5+
Dantooine: 650
Verence Terrawin
Senator of Alsakan
First Lord of the Foreign Office, Alsakan
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